Value of Serbian real estate market is constantly growing

Published on 13. May 2023., News

The value of the real estate market in Serbia in 2022 was 7.5 billion euros, but a third of the total turnover, i.e. 2.5 billion euros, came from the partially regulated market, the Republic Geodetic Institute (RGZ) announced on Friday.

A new report published by the RGZ showed that the system of the real estate market in Serbia is partially regulated and is constantly growing, in terms of the number of transactions and the value of the turnover.

The number of contracts concluded within the partially regulated market system last year was 21,784, which was 119 percent more than in 2019. Also, as stated, in the case of purchases directly from investors, 80 percent of the total value of traded real estate came from the partially regulated market.

Apartments are most often bought from investors, where there has also been a significant increase in purchases on the partially regulated real estate market system in the last four years, the RGZ announced.

The percentage of the purchase of apartments directly from investors on the partially regulated market in relation to the entire primary market of apartments in 2022 reached 71 percent (with a 49 percent share in 2019) for the territory of Serbia and 84 percent for the City of Belgrade (with a 51 percent share in 2019. ).

The RGZ reminds that the regulated system of the real estate market is a legally regulated way of buying and selling real estate, in which all procedures are carried out in accordance with the regulations, that is, all real estate is registered in the cadastre, which enables legal certainty and protection of the rights of participants in the trade.

At the same time, the partially regulated system includes immovable properties that are not registered in the cadastre and is only partially regulated by laws and regulations.

As stated, the most common reasons are that the documentation is not suitable for registration in the real estate cadastre, that is, some mandatory element for registration is missing in accordance with the current law, the documentation has not been submitted for registration or is not enforceable.

It Is added that the unregulated system of the real estate market includes real estate that was not built in accordance with legal regulations, is not registered in the cadastre and is outside the control of competent institutions.

The RGZ warned that because of this, buyers are often exposed to the risk of fraud, because they are uninformed about the legal status of the real estate they are buying. RGZ does not have data on transactions from the unregulated system of the real estate market.

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